Pyridoxal-phosphate (PLP)-dependent enzymes catalyse a remarkable diversity of chemical reactions in nature. A1RDF1 from Arthrobacter aurescens TC1 is a fold type I, PLP-dependent enzyme in the class III transaminase (TA) subgroup. Despite sharing 28 % sequence identity with its closest structural homologues, including b-alanine:pyruvate and g-aminobutyrate:a-ketoglutarate TAs, A1RDF1 displayed no TA activity. Activity screening revealed that the enzyme possesses phospholyase (E.C. 4.2.3.2) activity towards O-phosphoethanolamine (PEtN), an activity described previously for vertebrate enzymes such as human AGXT2L1, enzymes for which no structure has yet been reported. In order to shed light on the distinctive features of PLP-dependent phospholyases, structures of A1RDF1 in complex with PLP (internal aldimine) and PLP·PEtN (external aldimine) were determined, revealing the basis of substrate binding and the structural factors that distinguish the enzyme from class III homologues that display TA activity.Pyridoxal-phosphate (PLP)-dependent enzymes catalyse a wide range of chemical reactions, including the racemisation and decarboxylation of amino acids and transamination between amino acid donors and keto acid acceptors, [1,2] and new reactions, including oxidations, [3] continue to be discovered. Some of these enzymes, notably those of the "PLP fold type I" and belonging to the class III transaminase (TA) subgroup, have become extremely useful in biotechnology, because some members possess the ability to form chiral amines from ketone precursors, [4] whereas others catalyse the useful racemisation of amino acid amides. [5,6] In a review in 2015, Steffen-Munsberg and co-workers also drew attention to more obscure and uncharacterised reactions of the class III transaminase group, [1] including roles as phospholyases (E.C. 4.2.3.2). Phospholyases had been identified and partially characterised in early work by Jones [7] and Faulkner [8] in strains of Erwinia and Pseudomonas.The Erwinia enzyme was reported to catalyse the transformation of phosphoethanolamine (PEtN, 1) to yield acetaldehyde (2), ammonia and phosphate (Scheme 1).The involvement of PLP in the elimination of phosphate from 1 has since been established for vertebrate enzymes such as human AGXT2L1 and AGXT2L2 by the groups of Schaftingen [9] and Peracchi.[10] These enzymes have a role in phospholipid metabolism, and are of interest as playing a role in neuropsychiatric disorders, [9] although no structure of such a PLPdependent phospholyase has yet been reported. As part of an ongoing study of the structural and catalytic diversity displayed by PLP-dependent enzymes, we cloned the complement of genes encoding predicted transaminase enzymes from the bacterium Arthrobacter aurescens TC1 [11] into Escherichia coli, and many of the genes were expressed in the soluble fraction. From detailed bioinformatics analysis of this enzyme complement by previously described methods, [1] and from direct comparison with the AGXT2L1 sequence, [9,10] it was predicted that th...